In a major consumer-centric reform to promote cleaner fuels, the Petroleum and Natural Gas Regulatory Board (PNGRB) has rationalised the unified tariff structure for natural gas transportation to encourage wider adoption of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) effective 1 January 2026.

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PNGRB Announces Revised Tariff Framework

Under the revised framework, PNGRB has reduced the number of tariff zones from three to two i.e. up to 300 km and beyond 300 km. Further, to promote CNG and Domestic PNG usage, it has been notified that the tariff applicable for up to 300 km will be charged for the CNG and PNG-D sector across the country, irrespective of distance.

"This reform advances the objective of "One Nation, One Grid, One Tariff", reduces regional disparities in transportation costs, and aligns natural gas pricing with the transportation cost policy of competitive fuels such as LPG and Motor Spirit. PNGRB has notified transportation tariffs of Rs 54.00/MMBTU (up to 300 km) and Rs 102.86/MMBTU (beyond 300 km) effective 1 January 2026," Petroleum and Natural Gas Regulatory Board said in a statement.

Expected Price Reduction for Consumers

However, CNG and Domestic PNG consumers nationwide will be charged the Zone-1 tariff of Rs 54.00/MMBTU, resulting in nearly 50% lower transportation charges for consumers located beyond 300 km.

The revised tariff regime is expected to reduce CGD sector transportation costs by Rs 1,000 crores approx. annually, leading to a reduction in delivered prices of CNG by Rs 1.25 - 2.50 per kg and Domestic PNG by Rs. 0.90 - 1.80 per SCM, directly benefiting consumers.

Supporting India's Clean Energy Transition

These reforms align with the Government of India's vision to increase the share of natural gas in the energy mix, strengthen energy security, and support the transition towards cleaner and sustainable fuel.

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